summary
Introduced
06/03/2019
06/03/2019
In Committee
06/28/2019
06/28/2019
Crossed Over
Passed
Dead
12/31/2020
12/31/2020
Introduced Session
116th Congress
Bill Summary
To regulate certain State taxation of interstate commerce, and for other purposes. This bill expands the federal prohibition against state taxation of interstate commerce to include taxation of out-of-state transactions involving all forms of property and services, including the furnishing or gathering of information and sales or transactions involving digital goods or services. (Under current law, the prohibition applies only to sales of tangible personal property.) The bill also (1) prohibits state taxation of an out-of-state entity unless the entity has a physical presence in the taxing state, (2) sets forth criteria for determining physical presence in a state, and (3) specifies requirements for computing the tax liability of affiliated businesses operating in a state.
AI Summary
This bill, the Business Activity Tax Simplification Act of 2019, aims to modernize and expand the federal prohibition against state taxation of interstate commerce. The key provisions are:
1) It prohibits states from taxing out-of-state transactions involving any form of property, services, or digital goods/services, not just tangible personal property as under current law.
2) It prohibits states from taxing an out-of-state entity unless that entity has a physical presence in the taxing state, and it sets criteria for determining physical presence.
3) It specifies requirements for computing the tax liability of affiliated businesses operating in a state, to ensure proper apportionment of the tax base.
The bill aims to simplify and modernize the rules around state taxation of interstate business activities.
Committee Categories
Government Affairs, Justice
Sponsors (4)
Last Action
Referred to the Subcommittee on Antitrust, Commercial, and Administrative Law. (on 06/28/2019)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/116th-congress/house-bill/3063/all-info |
| BillText | https://www.congress.gov/116/bills/hr3063/BILLS-116hr3063ih.pdf |
| Bill | https://www.congress.gov/116/bills/hr3063/BILLS-116hr3063ih.pdf.pdf |
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